Stock Market Update
15-Oct-26 10:05 ET
Technology weakness continues as falling yields support broader market
Dow +198.48
at 51820.17,
Nasdaq -239.53
at 26473.78,
S&P -24.88
at 7694.13
[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.0%), and DJIA (+0.4%) are off to a mixed start as semiconductor stocks and other AI-related names extend their recent declines. Meanwhile, rotational buying is providing some support to the broader market, with a flight to safety in Treasuries pushing yields lower and benefiting select rate-sensitive groups.
The top-weighted information technology sector (-1.8%) is once again at the bottom of the sector leaderboard, pressured by a 3.6% slide in the PHLX Semiconductor Index, which has extended this week's loss past 10%. AI infrastructure names such as Lumentum (LITE 814.16, -82.18, -9.17%) are under heavy pressure, hardware stocks such as Dell (DELL 462.57, -45.36, -8.93%) continue to slide after a series of negative analyst commentary yesterday, and memory names such as Sandisk (SNDK 1302.80, -100.54, -7.16%) move lower again amid fears of growing competition from Chinese companies.
NVIDIA (NVDA 215.52, -5.78, -2.61%) and Tesla (TSLA 356.37, -10.79, -2.94%) are among the mega-cap laggards this morning.
The industrials sector (-1.1%) is also firmly lower amid weakness across names associated with the AI buildout, while the energy sector (-1.3%) lags despite crude oil moving modestly higher.
Despite the weakness in the AI trade, the broader market is holding up relatively well. Advancers outpace decliners by a 2-to-1 ratio on the NYSE and hold a slight edge on the Nasdaq as well.
The defensive consumer staples (+2.6%) and health care (+2.4%) sectors are again seeing strong rotational interest, while the real estate sector (+1.1%) outperforms amid lower Treasury yields this morning.
Currently, the 10-year note yield is down 15 basis points to 5.04% amid the safe-haven flight to Treasuries. Homebuilders are among the best-performing groups as a result, with the iShares U.S. Home Construction ETF up 3.9%.
Just released, business inventories increased 0.4% in August (Briefing.com consensus 0.4%), from an upwardly revised 0.9% increase in July (from 0.8%).
